These problems were highlighted by the BBC News website after many state-run nurseries warned they faced budget cuts or closure because of the changes.
Children's Minister Dawn Primarolo said only a third of local councils would be ready to bring in the new arrangements.
A government poll of councils said many were having "serious difficulties".
Under the Early Years Single Funding Formula, the government wants private, voluntary and independent nurseries to be funded at the same level as state-run pre-schools, which currently get more cash.
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It's really important that we take the time to get this right so that the really disadvantaged children aren't the ones to lose out
Megan Pacey
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Many predicted this change would lead to very effective state-run nursery schools being unable to continue as they do at present.
And ministers faced the prospect of local campaigns to prevent highly-valued nurseries from being run down or even closed.
But now the introduction of this change has been postponed until April 2011 - after the General Election - and it is unclear whether it will ever be brought in.
Announcing the move in a written ministerial statement, Children's Minister Dawn Primarolo said many local authorities had been working hard to prepare for the formula's implementation in April 2010
"However, during the summer it became clear that a significant number of local authorities were experiencing difficulty in developing their EYSFF.
"More recently, parents and providers, from both the maintained and the PVI sectors, have expressed concerns about the potential adverse impact on provision if the EYSFF is introduced now," she said.
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